MISSISSAUGA, ON, April 26,
2021 /CNW/ - Aegis Brands Inc., ("Aegis" or the
"Company") (TSX: AEG) today announced that it has completed the
sale of substantially all of the assets comprising its specialty
coffee brand "Second Cup Coffee Co." to an affiliate of
Montreal-based Foodtastic Inc., an
emerging leader in the restaurant franchising industry.
The proceeds from the transaction of $14
million were subject to certain adjustments on closing,
resulting in a net closing cash payment to Aegis of approximately
$12 million. In addition, the transaction includes an earn-out
based on royalties earned from certain Second Cup cafés opened
following closing.
After the transaction, Aegis' assets include Bridgehead Coffee,
an Ottawa-based specialty coffee
retailer, and Hemisphere Cannabis Co., its retail cannabis
subsidiary. The Company will move ahead with a stronger balance
sheet enabling the acceleration of its growth strategy through
M&A transactions.
"We look forward to seeing Second Cup continue with Foodtastic,"
said Steven Pelton, President and
CEO of Aegis Brands. "At Aegis, we are motivated by the amount of
opportunity that exists in the market with respect to innovation
and growth. We seek to support talented entrepreneurs and acquire
strong brands as they emerge from the challenges of the pandemic,"
said Pelton.
"We are very excited to have acquired Second Cup and look
forward to expanding the brand throughout Canada," said Peter Mammas, President and CEO
of Foodtastic. "We would also like to thank Aegis for giving us the
opportunity and wish them the best with their future endeavors,"
said Mammas.
About Aegis Brands Inc.
Aegis Brands Inc. owns and
operates a portfolio of brands currently consisting of Bridgehead
and Hemisphere Cannabis Co. The Company was created with the
vision of building a portfolio of amazing brands that can grow and
flourish with access to our resources and expertise. We are
committed to letting each company under the Aegis Brands umbrella
operate as an independent brand, and to working with them to
provide shared expertise – and shared services – to help them
thrive.
For more information, please visit www.aegisbrands.ca or find
the Company on Facebook and Twitter.
About Foodtastic
Foodtastic is the franchisor of
multiple restaurant concepts including, Au Coq, La Belle et La
Boeuf, Monza, Carlos & Pepe's, Souvlaki Bar, Nickels,
Rotisseries Benny, Chocolato, Big Rig and Bacaro. Foodtastic is a
leader in the restaurant franchising business with over 130
restaurants and $240 million in
annualized sales.
Cautionary Note on Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Canadian securities laws. These forward-looking
statements contain statements of intent, belief or current
expectations of Aegis. Forward-looking information is often, but
not always identified by the use of words such as "anticipate",
"believe", "expect", "plan", "intend", "forecast", "target",
"project", "may", "will", "should", "could", "estimate", "predict"
or similar words suggesting future outcomes or language suggesting
an outlook.
The forward-looking statements included in this press
release, including statements regarding the earn-out component of
the purchase price, the nature of Aegis' growth strategy going
forward and execution on any of its potential plans (including with
respect to the growth and development of Bridgehead Coffee and
Hemisphere Cannabis and identification of future acquisition
targets), and the strength of Aegis' balance sheet going forward,
are not guarantees of future results and involve risks and
uncertainties that may cause actual results to differ materially
from the potential results discussed in the forward-looking
statements. In respect of the forward-looking statements and
information included in this press release, Aegis has provided such
in reliance on certain assumptions that it believes are reasonable
at this time, including the ability of the Company to manage the
risks (economic, operational, financial, and other risks)
associated with the COVID-19 pandemic, the ability of the
Company to identify new acquisition opportunities and to
successfully integrate past and future acquisition targets into the
Company's business, and the Company's ability to generally execute
on its strategy going forward. Accordingly, readers should not
place undue reliance on the forward-looking statements and
information contained in this news release.
Risks and uncertainties that may cause such differences
include but are not limited to: risks that the Transaction may have
a negative impact on the market price and liquidity of the common
shares; risks that no amounts on account of the earn-out may ever
be paid; risks related to the Company's strategy going forward;
risks related to the COVID-19 pandemic; and other risks inherent in
the industry in which Aegis operates.
When relying on forward-looking statements to make decisions,
investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. Readers are
cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect
Aegis' operations or financial results are included in reports on
file with applicable securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com).
The forward-looking statements in this press release are made
as of the date it was issued and Aegis does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable law.
By their very nature, forward-looking statements involve inherent
risks and uncertainties, both general and specific, and risks that
outcomes implied by forward-looking statements will not be
achieved. Aegis cautions readers not to place undue reliance on
these statements.
SOURCE Aegis Brands Inc.